Looks like we’ll have to dig deeper – to pay for groceries into the new year.

A report says prices for food are expected to run ahead of inflation – for the second straight year.

The University of Guelph’s yearly report says food prices could go up by as much as 2.4 percent – propelled by a 5 percent increase in meat and seafood.

This year, meat prices went up by double digits and hit record highs. Ranchers couldn’t increase their herd sizes fast enough to keep up with the demand.

But Sylvain Charlebois, one of the report’s authors, says there is some good news: inflationary pressure from flat interest rates – combined with a slump in the loonie against the U.S. dollar – will be offset by lower energy costs.